So... Why not go download an open source encryption program with stealth partition mounting that will do the exact same thing, except not only is it hidden and stealthed, but also encrypted and can be accessed normally once you authenticate it?

not tested or really understand it atm (lateness), but hidden wouldn't do anything if explorer was set to show hidden folders and files.. This trick does something totally different and makes it only accessible doing the reverse (ish) of the steps... I used to hide stuff in System 7 (ye olde Mac OS) using the Invisible flag which made it invisble to any program not set to be aware of those files... The finder wasn't aware as most programs. ResEdit was my friend

ever heard of encryption? this doesn't hide anything. all files will be completely recoverable without a password, this is just about as stealth as using a hidden folder. not at all. it would be better to put your files in a password protected zip file, that would be a lot more secure.

"this is just about as stealth as using a hidden folder."
Except that there's an option to turn on hidden folders, and you can easily unhide hidden folders if you know their location. This takes a lot more work.

To contradict the clame this isn't a security problem. mal-ware (viruses, spyware, browser hijacks, worms etc) can use this to hide.
Not viruses so much as browser hijacks, worms and spyware. Viruses are obsolete. But basicly anything that can obscure your files from you can obscure your files from your virus scanner.

It's the Desktop.ini that makes the contents of the folder "hidden," so only things which pay attention to Destop.ini (Explorer, "open" dialogs, Windows search) will miss the files. It's a lot like putting things in recycler, as another commenter mentioned. Btw, virus scanners won't miss it.

All it takes to crack that is using another OS to mount the filesystem or if people use the professional data recovery programs and other assorted tools in the portfolio of data miners to get that data if someone really wanted to get to those files to provide incriminating evidence. This would be decent for husbands who want to hide their porn collection so I'm adding one more star.

For anyone who plans to use this for any kind of "security" -- don't. You haven't hidden anything. Every dork worth their salt (including most investigators) get a warrant (or don't), take your hard drive, plop it into another machine, mount in Linux and dd it (grab every byte). The files are all in plaintext and can be read by anyone with 5 minutes and rudimentary knowledge of the command line. If you want real security, grab any of the thousands of encryption tools out there. Don't do this sh*t.

Ok to answer to (almost) everybody: hidden partition is not always possible (especially if you're not the owner), encrypted files can be deleted, deleting Desktop.ini does not remove the stealth, the "Recycled" folder trick is already recognized by many antivirus programs (although it still works), fonts are CosmicTwo and Japanette, I discovered this when WinRAR unzipped my files in void but yet asked for overwritting when trying again, and yeah I probably need a GF. :P